Core Viewpoint - JD.com is making significant moves in the prepared food sector by establishing a dedicated business unit for prepared foods, indicating a strategic shift towards developing its own brand in this category [2][4]. Group 1: Strategic Developments - JD.com has officially formed a prepared foods business unit, which is on par with other major divisions within its retail structure, and is led by Andy Tian, reporting directly to CEO Xu Ran [2]. - The establishment of this independent unit marks a strategic upgrade, shifting focus from brand partnerships to the development of proprietary products [4][6]. - JD.com has been involved in the prepared food sector since 2017, gradually building partnerships with well-known restaurant brands and expanding its product offerings [3][6]. Group 2: Market Position and Growth Potential - The prepared food market in China has been growing rapidly, with a projected market size of 4.85 trillion yuan in 2024, reflecting a year-on-year growth of 33.8% [8]. - JD.com aims to leverage its supply chain capabilities to enhance its prepared food offerings, with plans to create 20 brands with annual sales exceeding 100 million yuan and 5 brands exceeding 500 million yuan within three years [6][8]. - The shift towards prepared foods is seen as a way to tap into new profit margins, as these products can achieve over 30% gross margins, contrasting with traditional retail models [7]. Group 3: Competitive Landscape - Other retail platforms, such as Hema and Dingdong Maicai, have also been developing their own prepared food brands, indicating a competitive landscape where self-branded prepared foods are becoming a key growth area [8]. - JD.com's entry into this market aligns with its founder Liu Qiangdong's strategic principle of focusing solely on supply chain-related businesses [8].

Summary of Conference Call Records Industry Overview - The takeaway from the conference call indicates a significant reshaping of the instant retail market in 2025, with Meituan maintaining a leading position with a 50% market share, followed by Taobao Flash Purchase (33%) and JD.com (17%) [1][2]. Key Points and Arguments - **Intense Competition in Food Delivery**: The competition among food delivery platforms has intensified, with JD.com rapidly increasing order volume through substantial subsidies (5-10 RMB per order), impacting the profitability of Meituan, which previously earned around 1.5 RMB per order [1][4]. - **E-commerce Market Dynamics**: Alibaba's market share has dropped from 70% to 40%, with Pinduoduo and Douyin e-commerce emerging as significant competitors. Douyin's live-streaming e-commerce has diverted advertising spending, leading to a slowdown in Alibaba's GMV growth [1][5]. - **Meituan's Competitive Advantages**: Meituan leverages strong barriers in food delivery, localized marketing, and logistics efficiency (approximately 8 million delivery riders) to maintain its market position. The company also utilizes a dual circulation model to drive traffic [1][8]. - **Investment Plans by Alibaba**: Alibaba plans to invest 50 billion RMB to subsidize Taobao Flash Purchase to boost order volume [1][8]. - **Instant Retail's Limited Impact on E-commerce**: Instant retail currently accounts for only 6% of total e-commerce volume, expected to rise to 12% in five years. However, it effectively utilizes delivery capacity to reduce costs, with Meituan achieving profitability in instant retail for the first time last year [1][10]. Additional Important Insights - **Recent Order Volume Records**: On July 5, Taobao Flash Purchase initiated subsidies, achieving 80 million orders, while Meituan reached 120 million orders. By July 12, Meituan's instant retail orders surged to 150 million, setting a new record [2]. - **Market Share Expansion**: The main players in the food delivery market have expanded from Meituan and Ele.me to include Meituan, Taobao Flash Purchase, and JD.com, with Taobao Flash Purchase replacing Ele.me as a key brand within Alibaba [2][8]. - **Long-term Industry Outlook**: In the short term, increased competition may lead to higher costs and lower profit margins across the industry. However, in the long run, this competition may benefit leading companies by reducing market education costs and expanding market size [14]. - **Challenges in New Retail Development**: The prospects for new retail are limited due to supply and demand constraints, necessitating deeper exploration of product operations to enhance diversity and supply chain efficiency [15]. Conclusion - The conference call highlights the evolving landscape of the food delivery and e-commerce sectors, emphasizing the competitive strategies of major players like Meituan, Alibaba, and JD.com. The insights provided indicate both immediate challenges and long-term opportunities for growth and market share expansion within these industries.